Market Link Guide – Iceland
Key features
CSD link as defined under CSDRa | Yes |
Type of link | Direct link to to Nasdaq CSD SE, SSS Iceland eligible securities |
a. CSD Regulation (EU) No 909/2014, Article 2(29).
CSD | |
Name | Nasdaq CSD SE |
FATCA GIIN | Not available |
LEI | 485100001PLJJ09NZT59 |
Country of incorporation | Nasdaq CSD SE is incorporated in Latvia and operates the Icelandic Settlement System through Icelandic branch, which is governed by the Icelandic law |
Account type | Omnibus account |
Legal Account name/holder | LuxCSD |
Operational arrangements
Yes/No | Remarks | |
Settlement in T2S | No | |
Settlement free of payment | Yes | |
Settlement against payment | Yes | LuxCSD facilitates against payments transactions for its clients to the local Icelandic CSD and on the necessary condition that clients of LuxCSD maintain a cash account at the Icelandic Central Bank for settlement against payment purposes. |
Settlement against payment in central bank money account of LuxCSD client | Yes | LuxCSD facilitates against payments transactions for its clients to the local Icelandic CSD and on the necessary condition that clients of LuxCSD maintain a cash account at the Icelandic Central Bank for settlement against payment purposes. |
Bridge settlement | No | |
Shaping facility | No | |
Partial settlement | No | Please see details in Settlement services |
Settlement penalty fees | Yes | Please see details in Settlement services |
Hold and Release | Yes | Please see details in Settlement services |
Recycling | Yes | Please see details in Settlement services |
Bilateral cancellation | Yes | Please see details in Settlement services |
Pre-matching | Yes | Immediate release flag |
Back-to-back processing | No | |
Allegements | Yes | Via the CSD on against payment transactions only |
Automatic compensation | No | |
Registered securities | No | |
Multi Market Securities | No | |
Lending and borrowing | Yes | |
Proxy voting | No | |
Investment Funds | No | |
Liquidity Hub Connect | No | |
Sale and purchase of rights | No | |
Repo services | Yes | |
Market restrictions | Yes | Foreign investment is not allowed in any company involved in “fish operations” or the primary fish processing industry. Only Icelandic citizens and other Icelandic entities, as well as individuals and legal entities domiciled in another member state of the EEA, are permitted to own energy exploitation rights for non-domestic use of waterfalls and geothermal energy. The same applies to enterprises that produce or distribute energy. Positions held in Icelandic non-taxable debt securities by LuxCSD clients, may only be held by the following:
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FTT | No | |
Daily reconciliation | Yes | |
Link eligible for use in Eurosystem credit operations | No |
Moment of entry of instructions | A transfer order is considered to have entered the system of Nasdaq CSD Iceland when the matched transfer orders have been transferred to the securities settlement system. |
Irrevocability of instructions | Matched transfer orders irrevocable and cannot be unilaterally cancelled by the parties |
Finality of instructions | The full and final settlement of matched orders at Nasdaq CSD Iceland. |
Legal arrangements
The below section is based on the legal opinion obtained by LuxCSD that was issued on 30 June 2024. The information is provided for guidance only and should not be considered in isolation or as constituting a complete or definitive legal advice on any specific matter.
No insolvency proceedings against the CSD | Confirmed |
Liability for negligence | Confirmed |
Book-entry regime with in rem rights | Icelandic book-entry regime does not confer to LuxCSD in rem rights. |
Recognition as direct CSD account-holder | Confirmed |
Recognition of nominee concept | Confirmed, LuxCSD will be recognised as account-operator on behalf of its underlying clients. |
No right of retention to the CSD | Confirmed |
Segregation of assets at the CSD | Confirmed |
No right of use | Confirmed |
No upper-tier attachments | Icelandic law allows attachment of securities credited to the account at the CSD. |
Insolvency of CSD with no impact on LuxCSD’s rights | Confirmed |
Shortfall pro-rated among holders | Confirmed |
Settlement finality in case of insolvency | Confirmed |
| Record keeping period of at least 10 years | Confirmed |